The company offers two telling examples of the practice this is meant to stop, although ironically the first doesn’t display properly on Google’s blog nor on ours (the second example is “MyBank” versus “MyBɑnk”). Thankfully, the provided image sums up the issue very well:

The news today follows Google’s announcement last week that Gmail has gained support for accented and non-Latin characters. The company is clearly okay with international domains, as long as they aren’t abused to trick its users.